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Hynix's Board Rejects Sale
Of Chip Business to Micron

By

Don Clark and

Jay Solomon Staff Reporters of The Wall Street Journal

Updated May 1, 2002 12:01 a.m. ET

Directors of South Korea's Hynix Semiconductor Inc. vetoed a tentative $3.4 billion deal to sell its memory-chip business to Micron Technology Inc., a surprise development likely to cause further turmoil in global chip prices.

Hynix's board, under pressure from Korean labor unions, said it would pursue a plan to keep operating the company independently. But the decision sets the stage for a confrontation with Hynix's state-controlled...